Abu Dhabi Plans to Quit Daimler image

A German magazine reported that Abu Dhabi plans to exit its investment in German premium automaker Daimler.

The Gulf state’s investment fund Aabar is taking into consideration ways of disposing its remaining stake after having reduced its holding from 9% to 3%. Oil-rich Abu Dhabi accounts for more than half of the UAE’s economy and is currently reviewing its overseas investment portfolio as part of the plan to instill more discipline in dealmaking among its investment firms.

Selling its stake in the German automotive group could heighten pressure on Daimler Chief Executive Dieter Zetsche, who has repeatedly tried to fight off investor calls to sell the company’s trucks business.

“Abu Dhabi has been mulling an exit for some time now,” said one of the sources following an earlier magazine report on the matter.

Aabar, the emirate’s sovereign wealth fund, has become Daimler’s largest investor after it bought 9% holding for 1.95 billion euro in March 2009. In October 2012 Aabar declared it remained “fully committed to its position in Daimler and continues to be supportive of Daimler’s management and strategy”.

Daimler said that it didn’t know that Aabar intended to sell its stake and the company didn’t had any talks over this matter with Aabar.